Frontera's Colombian Asset Bidding War: Parex vs. GeoPark

Frontera Energy has received a superior bid from Parex Resources to acquire its Colombian operations, exceeding GeoPark's previous offer. GeoPark can respond by March 12. The proposed deal values Frontera's assets at $500 million, including debt assumptions and a potential break fee.

Frontera Energy Corporation, listed in Toronto, announced a superior bid acceptance from Parex Resources for its Colombian assets. This move supersedes a previous offer from GeoPark.

GeoPark had earlier agreed to acquire Frontera's Colombian operations for $375 million. However, Parex proposed $500 million, including debt assumption and a possible contingent payment, compelling Frontera to reconsider.

If Frontera and Parex reach an agreement, GeoPark stands to receive a $25 million penalty fee. GeoPark has until March 12 to amend its prior agreement terms.

(With inputs from agencies.)